CNPC acquires 35% stake in Shell's oil and gas unit in Syria

SINGAPORE (ICIS news)--Energy giant China National Petroleum Corp (CNPC) has agreed to acquire a 35% stake in Shell’s oil and gas unit in Syria, the two companies said on Wednesday.

Under the deal, CNPC would acquire a 35% interest in Syria Shell Petroleum Development, which is wholly-owned by Shell, CNPC said in a joint statement with Shell.

“Given the current pricing of oil, a lifespan of about 20 or so years for the oil fields and the amount of oil that they produce till then, the estimated worth of the deal is around $1.8bn (€1.5bn),” said Gordon Kwan, head of energy research at Mirae Asset Securities in Hong Kong.

Syria Shell has interests in three production licenses in ?xml:namespace>Syria that cover about 40 oil fields and which produces 23,000 bbl/day of crude, according to the joint statement.

“Both parties will look to continue growing and investing in attractive opportunities in Syria's upstream industry,” it added.

“Syria is the frontier exploration area in the Middle East…With a major partner like Shell, they could bring expertise, such as technology, back to China,” said Kwan.

“The deal would also allow them access to further investments in Syria,” he added.